- EOS recovery stalled on approach to 61.8% Fibo
- The community is concerned with EOS decentralization issues.
EOS/USD is changing hands at $10.81, off the recent low reached on June 13 at $9.02. The coin gained over 7% on daily basis, but it is down 4% since the start of the day. EOS market value is registered at $9.8B with average daily trading volumes $1.2B.
The largest amount of EOS/USD transactions are handled by Bitfinex. By no coincidence, Bitfinex is one of the biggest Block Producers of EOS, following the results of votes casted by EOS token holders. EOS claims to be a better version of Ethereum, but people are worried by the fact that the network is controlled by a bunch of whales, which do not mix very well with decentralization principles.
According to MIT Technology review, 100 holder control 75% of all EOS tokens, which heightens the risk of coordinated actions, especially now, when there are only 21 Block Producers responsible for verifying transactions. While this approach should help to speed up transactions, there are clear risks of biased decisions and corruption.
” At this point, there’s an incentive for delegates to form alliances (aka political parties, aka cartels) to coordinate their share percentages; this reduces losses to the cartel from chaotic competition that accidentally leads to some delegates not getting enough votes,” he wrote in his blog back in March.
EOS technical picture
Looking technically, EOS/USD recovery stalled on approach to 61.8% Fibo retracement at $11.22. Once it is cleared, the upside momentum may take the price towards $13.46 (50% Fibo) and $14.22 (50-DMA). On the downside, the support is created by 100-DMA at $10.80, followed by 200-DMA at $9.8.
EOS/USD, the daily chart